Industrials Daily Briefs

Sep 12

Daily Brief Industrials: Hozon New Energy Automobile Co Ltd, Blue Star Ltd, Innotek Ltd, Sai Gon Cargo Service and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hozon New Energy Automobile Pre-IPO – The Negatives – Remains Far from Being Profitable
Narrative and Numbers | Industrials (VOLT, JCHAC, HAVL, BLSTR) | FY24
10 in 10 with InnoTek Limited – Precision Metal Components for the Future
Saigon Cargo Services (SCS VN): August Volumes of 40% YoY, Correction Provides An Opportunity

Hozon New Energy Automobile Pre-IPO – The Negatives – Remains Far from Being Profitable

By Sumeet Singh

Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
In this note, we talk about the not-so-positive aspects of the deal.

Narrative and Numbers | Industrials (VOLT, JCHAC, HAVL, BLSTR) | FY24

By Pranav Bhavsar

This Insight focuses on Industrials, particularly those that derive a significant portion of their revenue from Air Conditioners (ACs).
Companies in focus are Voltas Ltd (VOLT IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN),
Blue Star Ltd (BLSTR IN) and Havells India (HAVL IN)

10 in 10 with InnoTek Limited – Precision Metal Components for the Future

By Geoff Howie

10 Questions for https://investors.sgx.com/_security-types/stocks/M14 What are some of the latest updates from InnoTek with reference to its financial performance? Net profit for 1H24 remained steady at S million, unchanged from the previous year, which includes a S million provision for inventory obsolescence.
In the past two years, InnoTek has diversified its customer base into technologically advanced sectors such as GPU servers, gaming machines, medical equipment, and ATMs.

Saigon Cargo Services (SCS VN): August Volumes of 40% YoY, Correction Provides An Opportunity

By Sameer Taneja

Sai Gon Cargo Service (SCS VN) reported yet another strong month of data, with cargo volumes for August 2024 up 40% YoY. YTD volumes are up 43%.
At this run rate, the company will comfortably beat its volume guidance of 248,000 tons for FY24 (>30% YoY). Q3FY24 will benefit from the full effect of the tariff hikes.
With the recent correction, the stock trades at 11.9x FY24e and has an 8% dividend yield. The company’s next catalyst would be its Q3 FY24 result in November.

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Sep 12

Daily Brief Industrials: Hozon New Energy Automobile Co Ltd, Blue Star Ltd, Innotek Ltd, Sai Gon Cargo Service and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hozon New Energy Automobile Pre-IPO – The Negatives – Remains Far from Being Profitable
Narrative and Numbers | Industrials (VOLT, JCHAC, HAVL, BLSTR) | FY24
10 in 10 with InnoTek Limited – Precision Metal Components for the Future
Saigon Cargo Services (SCS VN): August Volumes of 40% YoY, Correction Provides An Opportunity

Hozon New Energy Automobile Pre-IPO – The Negatives – Remains Far from Being Profitable

By Sumeet Singh

Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
In this note, we talk about the not-so-positive aspects of the deal.

Narrative and Numbers | Industrials (VOLT, JCHAC, HAVL, BLSTR) | FY24

By Pranav Bhavsar

This Insight focuses on Industrials, particularly those that derive a significant portion of their revenue from Air Conditioners (ACs).
Companies in focus are Voltas Ltd (VOLT IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN),
Blue Star Ltd (BLSTR IN) and Havells India (HAVL IN)

10 in 10 with InnoTek Limited – Precision Metal Components for the Future

By Geoff Howie

10 Questions for https://investors.sgx.com/_security-types/stocks/M14 What are some of the latest updates from InnoTek with reference to its financial performance? Net profit for 1H24 remained steady at S million, unchanged from the previous year, which includes a S million provision for inventory obsolescence.
In the past two years, InnoTek has diversified its customer base into technologically advanced sectors such as GPU servers, gaming machines, medical equipment, and ATMs.

Saigon Cargo Services (SCS VN): August Volumes of 40% YoY, Correction Provides An Opportunity

By Sameer Taneja

Sai Gon Cargo Service (SCS VN) reported yet another strong month of data, with cargo volumes for August 2024 up 40% YoY. YTD volumes are up 43%.
At this run rate, the company will comfortably beat its volume guidance of 248,000 tons for FY24 (>30% YoY). Q3FY24 will benefit from the full effect of the tariff hikes.
With the recent correction, the stock trades at 11.9x FY24e and has an 8% dividend yield. The company’s next catalyst would be its Q3 FY24 result in November.

💡 Before it’s here, it’s on Smartkarma

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✓ Company Data and News
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Sep 11

Daily Brief Industrials: Rubber, National Infrastructure Trust, Cosco Shipping Energy Transportation Co. Ltd. (H) and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

[Rubber, China, Futures] Typhoon Triggered Defaults Nudged Rubber Spot Prices and SHFE Futures Up
National Infrastructure Trust Pre-IPO Tearsheet
Cosco Shipping Energy Transportation – Capitulation in Oil and Related Equities Almost Complete?

[Rubber, China, Futures] Typhoon Triggered Defaults Nudged Rubber Spot Prices and SHFE Futures Up

By Farah Miller

Physical rubber prices gained strength during the Asian trade day as a typhoon in Vietnam disrupted the supply chain, limiting supply in the market.
In addition, increased inquiries from the Chinese tire makers for the prompt cargoes resulted in further support for the prices.
Chinese state buying up to 100kt of rubber, prices to be announced on 13 Sep 2024. This would provide some short term support on the SHFE

National Infrastructure Trust Pre-IPO Tearsheet

By Akshat Shah

National Infrastructure Trust (NIT IN) is looking to raise about US$190m in its upcoming India IPO. The deal will be run by SBI Caps and HDFC Bank.
National Infrastructure Trust is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
Its initial asset portfolio will consist of nine road assets, in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka with an aggregate length of ~683.875km.

Cosco Shipping Energy Transportation – Capitulation in Oil and Related Equities Almost Complete?

By Rikki Malik

Speculative liquidation of crude oil positions opens up an opportunity
A seasonally strong period for crude tanker rates coming up
Company option scheme for senior management approved. Strike above current price

💡 Before it’s here, it’s on Smartkarma

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✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 11

Daily Brief Industrials: Rubber, National Infrastructure Trust, Cosco Shipping Energy Transportation Co. Ltd. (H) and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

[Rubber, China, Futures] Typhoon Triggered Defaults Nudged Rubber Spot Prices and SHFE Futures Up
National Infrastructure Trust Pre-IPO Tearsheet
Cosco Shipping Energy Transportation – Capitulation in Oil and Related Equities Almost Complete?

[Rubber, China, Futures] Typhoon Triggered Defaults Nudged Rubber Spot Prices and SHFE Futures Up

By Farah Miller

Physical rubber prices gained strength during the Asian trade day as a typhoon in Vietnam disrupted the supply chain, limiting supply in the market.
In addition, increased inquiries from the Chinese tire makers for the prompt cargoes resulted in further support for the prices.
Chinese state buying up to 100kt of rubber, prices to be announced on 13 Sep 2024. This would provide some short term support on the SHFE

National Infrastructure Trust Pre-IPO Tearsheet

By Akshat Shah

National Infrastructure Trust (NIT IN) is looking to raise about US$190m in its upcoming India IPO. The deal will be run by SBI Caps and HDFC Bank.
National Infrastructure Trust is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
Its initial asset portfolio will consist of nine road assets, in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka with an aggregate length of ~683.875km.

Cosco Shipping Energy Transportation – Capitulation in Oil and Related Equities Almost Complete?

By Rikki Malik

Speculative liquidation of crude oil positions opens up an opportunity
A seasonally strong period for crude tanker rates coming up
Company option scheme for senior management approved. Strike above current price

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 10

Daily Brief Industrials: Advantest Corp, Lonking Holdings, Amaero International Ltd, Hozon New Energy Automobile Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Advantest (6857 JP): High Valuation, Low Visibility
Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price
Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone
Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

Advantest (6857 JP): High Valuation, Low Visibility

By Scott Foster

Visibility is poor. Following excellent 1Q results, management raised FY Mar-25 sales guidance by 14%, operating profit guidance by 53% and net profit guidance by 57%.
Strong demand for AI processors and memory should support more than 35% growth in IC tester revenues and a doubling of operating profit in the two years to Mar-26.
The shares have dropped to the bottom of their recent trading range, but are still selling at more than 30x our EPS estimate for next fiscal year.

Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price

By Osbert Tang, CFA

Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.
Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.

Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone

By Research as a Service (RaaS)

RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that it has completed qualification of C103 additive manufacturing powder with US advanced manufacturing conglomerate ADDMAN Group more than a quarter ahead of schedule.
Amaero notes that expected future sales from this relationship are material to its revenue and is a key assumption underpinning Amaero’s guidance that it will achieve EBITDA break-even in FY26.
Our FY26f EBITDA forecast of $0.1m assumes qualification is achieved.

Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

By Sumeet Singh

Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
In this note, we talk about the positive aspects of the deal.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 10

Daily Brief Industrials: Advantest Corp, Lonking Holdings, Amaero International Ltd, Hozon New Energy Automobile Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Advantest (6857 JP): High Valuation, Low Visibility
Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price
Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone
Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

Advantest (6857 JP): High Valuation, Low Visibility

By Scott Foster

Visibility is poor. Following excellent 1Q results, management raised FY Mar-25 sales guidance by 14%, operating profit guidance by 53% and net profit guidance by 57%.
Strong demand for AI processors and memory should support more than 35% growth in IC tester revenues and a doubling of operating profit in the two years to Mar-26.
The shares have dropped to the bottom of their recent trading range, but are still selling at more than 30x our EPS estimate for next fiscal year.

Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price

By Osbert Tang, CFA

Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.
Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.

Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone

By Research as a Service (RaaS)

RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that it has completed qualification of C103 additive manufacturing powder with US advanced manufacturing conglomerate ADDMAN Group more than a quarter ahead of schedule.
Amaero notes that expected future sales from this relationship are material to its revenue and is a key assumption underpinning Amaero’s guidance that it will achieve EBITDA break-even in FY26.
Our FY26f EBITDA forecast of $0.1m assumes qualification is achieved.

Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

By Sumeet Singh

Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
In this note, we talk about the positive aspects of the deal.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 09

Daily Brief Industrials: Far Eastern New Century and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Quiddity TDIV/50/100 Sep 24 Rebal: 100% Hit Rate; Perfectly Positioned for Our Trade

Quiddity TDIV/50/100 Sep 24 Rebal: 100% Hit Rate; Perfectly Positioned for Our Trade

By Janaghan Jeyakumar, CFA

The ADDs/DELs for the TDIV, T50, and T100 indices for the September 2024 index rebal event was confirmed after market close on Friday 6th September 2024.
There will be one change for the T50 index and four separate changes for the T100 index. One of the T100 changes will also trigger a TDIV index deletion.
In this insight, we have presented our final estimates for the index flows for ADDs/DELs and capping flows for the TDIV index.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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✓ Company Data and News
✓ Events & Webinars

Sep 09

Daily Brief Industrials: Far Eastern New Century and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Quiddity TDIV/50/100 Sep 24 Rebal: 100% Hit Rate; Perfectly Positioned for Our Trade

Quiddity TDIV/50/100 Sep 24 Rebal: 100% Hit Rate; Perfectly Positioned for Our Trade

By Janaghan Jeyakumar, CFA

The ADDs/DELs for the TDIV, T50, and T100 indices for the September 2024 index rebal event was confirmed after market close on Friday 6th September 2024.
There will be one change for the T50 index and four separate changes for the T100 index. One of the T100 changes will also trigger a TDIV index deletion.
In this insight, we have presented our final estimates for the index flows for ADDs/DELs and capping flows for the TDIV index.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 07

Daily Brief Industrials: Jardine Matheson Holdings, Hero Motors Limited, HEICO Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV
Hero Motors Pre-IPO Tearsheet
HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers

Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV

By David Blennerhassett

After publishing my insight (Jardine Matheson (JM SP): Trading “Cheap”) last week, my NAV calcs were called into question by some readers, when compared to street estimates.
Which is cool. I’m big enough to admit mistakes, where needed. So I’ve done some digging, including a back and forth with Jardine Matheson Holdings (JM SP).
The upshot? I have not lead you astray. You’ve been coming to the right place.

Hero Motors Pre-IPO Tearsheet

By Akshat Shah

Hero Motors Limited (2313904Z IN) is looking to raise about US$110m in its upcoming India IPO. The deal will be run by ICICI, DAM Cap and JM Fin.
Hero Motors (HML) is an integrated powertrain systems provider offering comprehensive solutions for designing, prototyping, validating, developing, and delivering system-level transmission solutions for electric as well as nonelectric powertrains.
According to CRISIL, it was among the first companies in India to capitalize on the global e-bike powertrain opportunity and have a distinct first mover advantage in this industry.

HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers

By Baptista Research

HEICO Corporation’s third quarter fiscal 2024 results reveal a robust financial performance, with significant increases in consolidated operating income and net sales that set new records for the company.
The earnings call provided a comprehensive analysis of HEICO’s various segments and strategic initiatives, showing a strong trajectory in its core markets, underscored by recent acquisitions and expanded product lines.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 07

Daily Brief Industrials: Jardine Matheson Holdings, Hero Motors Limited, HEICO Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV
Hero Motors Pre-IPO Tearsheet
HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers

Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV

By David Blennerhassett

After publishing my insight (Jardine Matheson (JM SP): Trading “Cheap”) last week, my NAV calcs were called into question by some readers, when compared to street estimates.
Which is cool. I’m big enough to admit mistakes, where needed. So I’ve done some digging, including a back and forth with Jardine Matheson Holdings (JM SP).
The upshot? I have not lead you astray. You’ve been coming to the right place.

Hero Motors Pre-IPO Tearsheet

By Akshat Shah

Hero Motors Limited (2313904Z IN) is looking to raise about US$110m in its upcoming India IPO. The deal will be run by ICICI, DAM Cap and JM Fin.
Hero Motors (HML) is an integrated powertrain systems provider offering comprehensive solutions for designing, prototyping, validating, developing, and delivering system-level transmission solutions for electric as well as nonelectric powertrains.
According to CRISIL, it was among the first companies in India to capitalize on the global e-bike powertrain opportunity and have a distinct first mover advantage in this industry.

HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers

By Baptista Research

HEICO Corporation’s third quarter fiscal 2024 results reveal a robust financial performance, with significant increases in consolidated operating income and net sales that set new records for the company.
The earnings call provided a comprehensive analysis of HEICO’s various segments and strategic initiatives, showing a strong trajectory in its core markets, underscored by recent acquisitions and expanded product lines.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

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